Oncothyreon Reports Second Quarter 2013 Financial Results
SEATTLE, WA, Aug. 6, 2013
Company to Hold Conference Call at 4:30 p.m. EDT Today
SEATTLE, WA, Aug. 6, 2013 /PRNewswire/ - Oncothyreon Inc. (NASDAQ: ONTY) today
reported financial results for the second quarter ending June 30, 2013.
Loss from operations increased in the second quarter of 2013 to $18.0 million
from $8.1 million in the second quarter of 2012, and to $26.0 million for the
six months ended June 30, 2013 compared with $13.8 million for the comparable
period in 2012. The increase in loss from operations for the three and six
months ended June 30, 2013 compared to prior year periods was primarily due to
an upfront payment of $10.0 million to Array BioPharma Inc. (Array) in
connection with the initiation of Oncothyreon's collaboration with Array,
which was announced on May 30, 2013. In addition, the increase in loss from
operations for the six months ended June 30, 2013 was also the result of
increased development activity for Oncothyreon's product candidates and
increased general and administrative expenses.
Net loss for the three months ended June 30, 2013 was $16.4 million, or $0.28
loss per basic and diluted share, compared with net loss of $8.7 million, or
$0.15 loss per basic and diluted share, for the comparable period in 2012.
Oncothyreon reported a net loss of $24.7 million or $0.43 loss per basic and
diluted share for the six months ended June 30, 2013, compared with a net
income of $1.0 million or $0.02 earnings per basic and $0.28 loss per diluted
share for the comparable period in 2012. The increase in net loss for the
three months ended June 30, 2013 compared to the prior year period was
primarily attributable to an upfront payment of $10.0 million to Array,
partially offset by a $1.6 million of non-cash income as a result of the
change in fair value of warrant liability for the three months ended June 30,
2013 compared to a $0.3 million of non-cash expense as a result of the change
in fair value of warrant liability for the three months ended June 30, 2012.
The increase in net loss for the six months ended June 30, 2013 compared to
the prior year period net income was primarily attributable to the upfront
payment of $10.0 million to Array, and a $1.3 million of non-cash income as a
result of the change in fair value of warrant liability for the six months
ended June 30, 2013 compared to a $15.3 million of non-cash income as a result
of the change in fair value of warrant liability for the six months ended June
30, 2012. In addition, the increase in net loss for the six months ended June
30, 2013 was also the result of increased development activity for
Oncothyreon's product candidates and increased general and administrative
As of June 30, 2013, Oncothyreon's cash, cash equivalents and investments were
$69.6 million, compared to $83.8 million at December 31, 2012, a decrease of
$14.2 million, or 16.9 percent. The decrease was primarily attributable to
$23.9 million cash used in operations during the six months ended June 30,
2013. This decrease was offset in part by net proceeds of approximately $9.9
million from the closing of a June registered direct offering of 5,000,000
shares of Oncothyreon common stock and warrants to purchase 5,000,000 shares
of common stock.
Oncothyreon believes the following financial guidance to be correct as of the
date provided. Oncothyreon is providing this guidance as a convenience to
investors and assumes no obligation to update it.
Exclusive of the one-time, upfront payment to Array, Oncothyreon currently
expects expenses in 2013 to be similar to 2012 and cash used in operations in
2013 to be approximately $29 to $31 million. As a result, Oncothyreon
estimates that its existing cash, cash equivalents and investments will be
sufficient to fund operations for at least the next 12 months.
Conference Call and Webcast
Oncothyreon will conduct a conference call today, August 6, 2013 at 4:30 p.m.
Eastern time (1:30 p.m. Pacific time) to discuss its second quarter 2013
financial results and provide a review of its pipeline of products in
development. To participate in the call by telephone, please dial (877)
280-7291 (United States) or (707) 287-9361 (International). In addition, the
call will be webcast live and can be accessed on the "Events" page of the
"News & Events" section of Oncothyreon's website at www.oncothyreon.com. An
archive of the webcast will be available after completion of the discussion
and will be posted on Oncothyreon's website.
Oncothyreon is a biotechnology company specializing in the development of
innovative therapeutic products for the treatment of cancer. Oncothyreon's
goal is to develop and commercialize novel synthetic vaccines and targeted
small molecules that have the potential to improve the lives and outcomes of
cancer patients. For more information, visit www.oncothyreon.com.
In order to provide Oncothyreon's investors with an understanding of its
current results and future prospects, this release contains statements that
are forward-looking. Any statements contained in this press release that are
not statements of historical fact may be deemed to be forward-looking
statements. Words such as "believes," "anticipates," "plans," "expects,"
"will," "intends," "potential," "possible" and similar expressions are
intended to identify forward-looking statements. These forward-looking
statements include Oncothyreon's expectations regarding future expenses,
clinical development activities and the use and adequacy of cash resources.
Forward-looking statements involve risks and uncertainties related to
Oncothyreon's business and the general economic environment, many of which are
beyond its control. These risks, uncertainties and other factors could cause
Oncothyreon's actual results to differ materially from those projected in
forward-looking statements, including the risks associated with the costs and
expenses of developing its product candidates, the adequacy of financing and
cash, cash equivalents and investments, changes in general accounting
policies, general economic factors, achievement of the results it anticipates
from its clinical trials of its product candidates and its ability to
adequately obtain and protect its intellectual property rights. Although
Oncothyreon believes that the forward-looking statements contained herein are
reasonable, it can give no assurance that its expectations are correct. All
forward-looking statements are expressly qualified in their entirety by this
cautionary statement. For a detailed description of Oncothyreon's risks and
uncertainties, you are encouraged to review the documents filed with the
securities regulators in the United States on EDGAR and in Canada on SEDAR.
Oncothyreon does not undertake any obligation to publicly update its
forward-looking statements based on events or circumstances after the date
Additional information relating to Oncothyreon can be found on EDGAR at
www.sec.gov and on SEDAR at www.sedar.com.
Condensed Consolidated Statements of Operations
(In thousands except share and per share amounts)
Three months ended Six months ended
2013 2012 2013 2012
Research and $ 16,058 $ $6,279 $ $21,857 $ $10,565
General and 1,989 1,824 4,181 3,279
Total operating 18,047 8,103 26,038 13,844
Loss from (18,047) (8,103) (26,038) (13,844)
Investment and 24 (227) 52 (199)
Interest — (146) — (309)
Change in fair 1,625 (259) 1,300 15,308
Total other 1,649 (632) 1,352 14,800
Net income $ (16,398) $ (8,735) $ (24,686) $ 956
Net income (loss) $ (0.28) $ (0.15) $ (0.43) $ 0.02
per share -
Net income (loss) $ (0.28) $ (0.15) $ (0.43) $ (0.28)
per share -
Shares used to 58,710,574 56,844,099 57,967,534 50,228,604
compute basic net
income (loss) per
Shares used to 58,710,574 56,844,099 57,967,534 51,723,266
net income (loss)
Consolidated Balance Sheet Data
(In thousands except share amounts)
June 30, 2013 December 31, 2012
Cash, cash equivalents and investments $ 69,569 $ 83,756
Total assets $ 74,877 $ 89,435
Long term liabilities $ 1,947 $ 4,041
Stockholders' equity $ 68,502 $ 82,323
Common shares outstanding 62,269,147 57,216,237
SOURCE Oncothyreon Inc.
Investor and Media Relations Contact:
2601 Fourth Avenue, Suite 500, Seattle, WA 98121
Tel: (206) 801-2100 Fax: (206) 801-2101
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